Celsius Network’s CEO Alex Mashinsky has called on investors to sell their stocks and buy Bitcoin as fears of a looming recession intensify.
Speaking to Kitco News on Tuesday, the billionaire noted that stocks were hanging on a knife’s edge, signalling an incoming drop that would annihilate investments in traditional industries.
“I normally say don’t fight the fed-and for the last several years (that) meant buy stocks, right?” Alex told Kitco News’ Editor-in-Chief Michelle Makori and anchor David Lin on the sidelines of Bitcoin 2022 in Miami.
“…but I announced two weeks ago that I sold all my stocks because fighting the Fed now is owning stocks and equities. If you don’t want to fight the Fed, get out of the way.” He added.
Mashinsky, whose firm manages over 159,000BTC for about 1.7 million users, stated that he had noticed rising decorrelation between Bitcoin and traditional market indices. According to him, while the stock market had continuously slumped from the beginning of the year, “Bitcoin has recovered most of its losses”. It thus meant that “Bitcoin is starting to behave as a safety asset”, the more reason he was selling his stocks to buy more Bitcoin.
The pundit further argued that the ongoing slump in stocks, especially those in the technology sector, was because the Fed put a lot of pressure on the economy by hiking rates. He also faults the Biden administration for its decision to turn off Russian oil taps stating that it had taken out a lot of liquidity from the market, putting further pressure on the already ailing economy.
Due to the Fed’s impropriety, Mashinsky went on to say- “I do expect a recession next year”, stating that he did not think there was anything the Fed could do.
That said, he expressed confidence in Bitcoin and Ethereum doing “very well from now onwards” as more money continues to flow from traditional finance into Centralised Finance(CeFi) and Decentralised Finance (De-Fi) from investors who seek a hedge against inflation.
“We have had a few macroeconomic events that kicked the can down the road, but we will see bitcoin over 100k this year.” He projected.
Mashinsky also believes other coins, including Solana, Avalanche and Cardano, will strengthen. Still, as to which one will lead the others, he stated that it is the one that figures out the following utility first and works around that. He also said that he believes Ethereum may flip Bitcoin by market cap in the next two years –reason- Ethereum is “expanding its utility much better than Bitcoin.”
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